4 P’s and Small ‘m’ Marketing Ted Mitchell

Big and Small ‘m’ Marketing Big M marketing is Strategic Marketing – Focus on Market Creation, goals and long term profits, organizational and competitive philosophy – SBU/Portfolio management, large scale allocation of resources Small m marketing is Marketing Management – Focus on operational and short range objectives and tactics, – Segmentation, Targeting, Positioning – Managing the 4 Ps of Marketing to a targeted segment – Marketing Metrics for Management

4 P STRATEGY INCLUDES CHOICES ABOUT TARGET MARKET and Positioning PRODUCT and Services PLACE and Supply Chain PROMOTION and Relationship Building PRICE and Revenue management GOALS OBJECTIVES and Metrics CONTROL and Feedback

Four P’s of Marketing Management The Marketing Mix is – Price and Payment System – Product, Services and Solutions Delivered – Promotion, Communication and Relationship Management (include packaging, branding, sales force management – Place of Distribution, Logistics and Supply Chain Management

Customer Centered Planning Customer

ProductPlace PricePromotion Controllable

Customer ProductPlace PricePromotion Political Social Legal Technology Demographics Cultural Suppliers Competitors Non-controllable Variables

UNCONTROLLABLE CONSUMER VALUES & TASTES DEMOGRAPHICS CULTURE AND SOCIAL INFLUENCES COMPETITION CHANNEL RELATIONSHIPS INFLATION UNEMPLOYMENT GNP GROWTH VALUE OF DOLLAR PATENTS RAW MATERIAL SHORTAGES

Customer ProductPlace PricePromotion Political Social Legal Technology Demographics Cultural Suppliers Competitors Non-controllable Variables ??? Blending of Variables

SUGGESTIONS FOR THE FIFTH P

Not Included in the Mix Profit Packing and Packaging Power Politics Policies Production Publics Patents

THE CHOICE OF TARGET MARKET IMPLIES MEASURED DEMAND OF ALTERNATIVE SEGMENTS – SEGMENTED THE MASS MARKET DID MARKET RESEARCH – STUDIED BUYER BEHAVIOR » ADOPTED A CUSTOMER ORIENTATION

PRODUCT NEW PRODUCT DEVELOPMENT PRODUCT LIFE CYCLE STRATEGIES PRODUCT LINE MANAGEMENT BRAND MANAGEMENT COST OF PRODUCTS FEATURES & QUALITY WARRANTY INSTALLATION SERVICE....

PLACE CHANNEL DESIGN VMS MANAGEMENT LOGISTICS Supply Chain Management RETAILING COST OF DISTRIBUTION MARKET EXPOSURE PUSH OR PULL

PROMOTION AUDIENCE RESPONSE BEHAVIOR SALESFORCE MANAGEMENT ADVERTISING MANAGEMENT PUBLIC RELATIONS PROMOTIONS & SPECIALS TARGET AUDIENCE OBJECTIVES COST OF ADVERTISING

PRICE DEMAND BASED COST BASED COMPETITIVE BASED OBJECTIVES POLICY ON LEVEL, FLEXIBILITY DISCOUNTS & ALLOWANCES LIFE CYCLE CHANGES

Alternative Business GOALS PROFIT GROWTH DIVERSIFICATION LEADERSHIP

Goals Have Two Aspects 1 A Goal is a statement that tells us how to evaluate alternative strategies 2 We can choose which goals we wish to pursue. That is to say, a goal is also an element of choice.

Objectives An objective is a statement that operationalizes your goals. Objectives Tells Us What To Measure Objectives Tells Us How Much Is To be Expected

OBJECTIVES IF THE GOAL IS PROFIT THEN OBJECTIVES MIGHT BE – 15% RETURN ON INVESTMENT – 20% RETURN ON SALES – $3.00 EARNINGS PER SHARE – 32% MARKET SHARE Different Ways to measure Profit Different Amounts of Profit To Be Expected

CONTROL EVALUATE PROGRESS – are we achieving our objectives FEED BACK SYSTEM – are the objectives and goals still appropriate

TARGET MARKET PRODUCT PROMOTION PRICE GOALS OBJECTIVES CONTROL THEN HOW MANY STRATEGIES ARE THERE? IF A MARKETING STRATEGY INCLUDES CHOICES ABOUT

CONSIDER TWO CHOICES UNDER EACH COMPONENT

TARGET MARKET –OLD VERSUS NEW PRODUCT –HIGH VERSUS LOW QUALITY PROMOTION –MASS ADV. VERSUS DIRECT MAIL PRICE –HIGH VERSUS LOW PRICE GOALS –PROFIT VERSUS GROWTH OBJECTIVES –ROI VERSUS SALES CONTROL –CENTRALIZED VERSUS LOCAL

2X2X2X2X2X2X2X2= STRATEGIES PEOPLE HAVE TO SIMPLIFY THE DESCRIPTION OF STRATEGIES!!

How to explain what your doing To your customers To your banker To your employees To your family To your competitors To your supplies To your channel members To your government

Generic 4 P strategies Every day low prices Easy to Buy, Easy Credit Easy to Find, Convenient High quality, High value Biggest selection Have it your way, mix and match Fast delivery Quality guaranteed Satisfaction guaranteed

What is Big M and small m Marketing? What are the 4 P’s of Marketing? What types of choices are in a marketing mix strategy? Why are profit and politics not elements of the marketing mix?